LinkedIn to Pay Almost $6 Million in Damages and Back Wages

LinkedIn has to pay almost $6M in overtime back wages and damages to employees after Dept of Labor investigation. This has implications for all businesses and how non-exempt employees are compensated for "off-the-clock hours."

LinkedIn is the preferred social network for business professionals. What Facebook is to your family & friends, LinkedIn is to your working life. It's a rich news source for things related to the workplace, a way to hear from and keep in touch with peers and past colleagues, and a great way to network.

LinkedIn settlement

Specifically, LinkedIn Corp. has agreed to pay $3,346,195 in overtime back wages and $2,509,646 in liquidated damages to 359 former and current employees working at company branches in California, Illinois, Nebraska and New York. An investigation by the U.S. Department of Labor’s Wage and Hour Division found that LinkedIn was in violation of the overtime and record-keeping provisions of the Fair Labor Standards Act.

You know what's cool? When notified of the violations, LinkedIn agreed to pay all the overtime back wages due and take proactive steps to prevent repeat violations. No lawsuit, no settlement, no issue. Now that's cool.

"This company has shown a great deal of integrity by fully cooperating with investigators and stepping up to the plate without hesitation to help make workers whole," said Dr. David Weil, administrator of the DOL Wage and Hour Division. Weil also said he is pleased LinkedIn has committed to positive and practical steps towards securing worker-safety related compliance.

Terms of re-endearment

LinkedIn failed to record, account and pay for all hours worked in a workweek, investigators found.

San Francisco wage patrol gets busy

In addition to paying back wages and liquidated damages, LinkedIn entered into an enhanced compliance agreement with the department that includes agreeing to: provide compliance training and distribute its policy prohibiting off-the-clock work to all nonexempt employees and their managers; meet with managers of current affected employees to remind them that overtime work must be recorded and paid for; and remind employees of LinkedIn's policy prohibiting retaliation against any employee who raises concerns about workplace issues.

"Off the clock hours are all too common for the American worker. This practice harms workers, denies them the wages they have rightfully earned and takes away time with families," said Susana Blanco, district director for the division in San Francisco. "We urge all employers, large and small, to review their pay practices to ensure employees know their basic workplace rights and that the commitment to compliance works through all levels of the organization."

Look out: Blanco also said that the DOL is committed to protecting the rights of workers and leveling the playing field for all law-abiding employers. That means they're on a roll.

The Fair Labor Standards Act or FLSA requires that covered, nonexempt employees be paid at least the federal minimum wage of $7.25 per hour for all hours worked, plus time and one-half their regular hourly rates for hours worked beyond 40 per week. The FLSA provides that employers who violate the law are, as a general rule, liable to employees for their back wages and an equal amount in liquidated damages. Liquidated damages are paid directly to the affected employees.

Additionally, the law requires employers to maintain accurate time and payroll records, and it prohibits retaliation against employees who exercise their rights under the law.

For more information about the FLSA and other federal wage laws, call the Wage and Hour Division’s toll-free helpline at 866-4US-WAGE (487-9243).